While most of us are familiar with Gresham‘s Law, we should remember that it does not mean that bad money is preferred to good money. Instead, it refers to a situation in which government mandates that inferior and superior money legally have the same face value.
The democratic mandate of the incoming Trump administration, along with Republican control of Congress and a confrontation of wills between the Pre
Federal oversight of each recycled metal transaction would be an intrusion into the daily life of the individual and business on an unseen scale.
A common belief among economists is that the central bank determines what interest rates should be. But is that accurate? Indeed, there is more to the story.
Contra Marx, the laws of economics are immutable and are the same no matter what historical epoch exists. Economies cannot flourish unless market prices, private property rights, and profits and losses are unhampered.
On this day 106 years ago, the warring parties of World War I agreed to an armistice, ending more than four years of slaughter in the trenches. As Ludwig von Mises recalled, governments also slaughtered their own currencies to pay for the bloodshed.
Not all news from the gold and monetary fronts is bad. In fact, gold made a number of advancements in seven states, including exemptions from taxes and attempts by states to restrict Federal Reserve behavior. Gold is alive and well.
The Fed lowers interest rates ostensibly to “stimulate” the economy. But while the Fed claims it is strengthening the economy, it actually weakens it through its easy-money policies.
Despite claims from the Keynesian “experts” that gold is a “barbarous relic,” the markets are saying that gold is more valuable than ever.
